Investor AB Year-End Report 1998

Business Wire, Feb 11, 1999

Outlook for 1999

The dramatic turbulence in the world stock markets in the fall was one sign of a growing nervousness among investors worldwide.

Why dramatic price falls usually occur in the fall is in itself a matter for speculation, but this is a fact that is probably common knowledge to every experienced stock market analyst.

Looking at stock market prospects for 1999, markets will probably be stimulated by continued liquidity inflows, both in Sweden and elsewhere. Since low interest rates can be expected, equities will offer a more attractive alternative than bonds or short-term investments.

The large volume of cross-border structural deals in recent years can be expected to continue in many sectors and to provide the market with additional stimulation. The extent to which this will be sufficient to boost share prices on a broad front is hard to determine since economic prospects remain uncertain throughout the world. For growth companies, mainly in IT and telecom, it would seem however that the sky's the limit at the moment.

But, enough about future visions. After twenty-one extremely eventful years as president I am now hoping instead to have a little time to look back and to reflect over a long and incredibly fascinating period of my life.

I am delighted that the Board has appointed Marcus Wallenberg to be my successor. Marcus, whom I have known for more than 20 years and who has been my closest colleague in recent years, has first-rate qualities with which to lead Investor into the 21st century. He is an unusually modern person with an inquiring mind and the same burning interest in young people and new ideas as his legendary grandfather.

Claes Dahlback

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